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Unformatted text preview: 1 WEEK 3 REVIEW QUESTIONS 1. The first public sale of company stock to outside investors is called a/an (Points: 1) seasoned equity offering. shareholders' meeting. initial public offering. proxy fight. 2. Which statement about common shareholders is incorrect? (Points: 1) Shareholders only have a residual claim. Shareholders have precedence over all other claimholders in the case of bankruptcy. Shareholders have a voting right. Shareholders are the ultimate owners of a corporation. 3. Which of the following stock exchanges has the most strict listing requirements? (Points: 1) American Stock Exchange NASDAQ New York Stock Exchange Pacific Stock Exchange 4. Bavarian Sausage, Inc. has preferred stock outstanding. This stock pays a semiannual dividend of $1.25. If the next dividend is paid six months from now and the annual required return is 10%, what should be the value of the preferred stock? (Points: 1) $6.25 $25 $12.50 $50.00 5. Which of the following investors can force a firm into bankruptcy court if the firm does not pay the...
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- Fall '09
- American Stock Exchange, annual coupon payments